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Guide to Tax Aware Investing

Guide to Tax Aware Investing
 
DOWNLOAD THE GUIDE TO TAX AWARE INVESTING
 

A tax aware investment approach has two clear goals - to minimise tax drag and maximise after-tax wealth for investors.

Australia has relatively high rates of personal tax. Personal tax revenue accounted for 42% of all tax revenue collected in Australia in 2019 - above the OECD average of 23%1.

Today's investment bond provider can substantially cut the effective rate of tax paid by the fund. In some cases, the effective long-term tax rate can drop to as little as 10%2, which is well below even the 15% that applies to superannuation funds.

Tax aware investing swings the pendulum in an investor's favour. If you reduce only 1% of your earnings a year that are subject to tax, it is estimated that you will have over 85% in extra return in a 15-year period using a global shares portfolio3.

Download the free guide to:

  • Understand how tax aware investing works and who can benefit from it

  • Identify potential costs of tax aware investing

  • Learn about how tax aware investing can achieve a variety of goals

 
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1 Revenue Statistics in Asia and the Pacific: Key findings for Australia, OECD, 2022
2 Indicative forecast effective tax rates. The effective average tax rates represent the estimated forecast average annual tax as a percentage of earnings for each 12-month period over a forecast period of 15 years. Actual tax amounts payable are not guaranteed and may vary from year to year based on the earnings of an investment option.
3 Using the average annual MSCI World ex-Australia (with net dividends reinvested) in Australian dollars Index return over the 10 year period to 31 January 2023.